The financial authorities are moving closer to announcing a reform plan that includes disclosing the calculation details of insurance sales commissions and extending the payment of the commissions over up to seven years, compared to up to two years at present.
The financial authorities will form a task force to discuss the details of the sales commission reform plan and hold an additional briefing this month to finalise the plan, reported Chosun Biz.
The Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) held a briefing on the insurance sales commission reform plan yesterday. Over 180 employees from about 70 insurance companies and general insurance agents (GA), insurance planners, and representatives from life and non-life insurance and GA associations attended the briefing.
Among the reforms are moves to promote greater transparency, with insurance companies to disclose commission rates of products by sales channel and product group in line with international standards.
The FSC and FSS announced the direction of the reform plan in December 2024. The reform plan will be revised in May after another industry briefing session set to take place this month.